Friday, September 16, 2016

Our first piece on corporate culture at financial firms is up and ready (click here).

We managed to grab the first bit of news in the ongoing Wells Fargo saga, but there should be further developments next week Tuesday, when Wells' CEO, John Stumpf, appears before a Senate Banking Committee hearing. He will face some tough questions.

(Meanwhile the House Financial Services Committee announced today that it too will be investigating the allegedly illegal activity by Wells Fargo employees, and says it too will summon CEO Stumpf to testify later this month.)

We don't want to give it away, but here's a short blurb, enticing you to read the piece. We hope you'll dig in!

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Bank of America is cutting costs. Its headcount has decreased by roughly 15,000 employees annually over the last three years. Things are moving fast. CEO Moynihan recently explained that: "We're driving a thing we call responsible growth. You've got to grow, no excuses."

Meanwhile, it has become known that numerous Wells Fargo's employees have been creating unauthorized accounts for their clients. Millions of accounts. More than 5,000 employees are said to have been fired.

The financial firms are under pressure, including from increased regulatory oversight (and non-compliance risk) and the renewed focus on cultural issues within financial firms.

We analyze some of the problem zones and propose a framework for tackling short-term thinking patterns and the associated cultural concerns -- appreciating that the mindsets, incentive structures, and personality types at financial firms can make matters all the more challenging.

In addition to Wells Fargo, we include examples and thought-pieces from: